Network marketing is a funny type of business. Talk to anyone and they will have an opinion about it, but few will be able to tell you why people fail in network marketing. There are a number of stock standard responses to this question - and if you learn why it is that people struggle and fall over before they reach their goals then you are doing better than most. In fact, you are best placed to really turn those reasons for failure into motivators for profit. The reason being that if you know what makes people fail, then you are but inches away from turning your network marketing business into a success.
What is network marketing?
Network marketing (also known as multi-level marketing due to the business model that is implemented) is a fantastic business model for entrepreneurs to begin their own business and build it to whatever level that they want. It is ideally run as a home business along with other members of the family, working together as part of a team. The way you start your own network marketing business is to sign up under a sponsor, who will then be in a position to train you up, support you and help you build your business to a level you want it to be. The main activity of your business is to sell a product or service through the network of people who you sponsor into the company yourself.
There are a number of tricks to choosing a company to start your network marketing business with, but that's another story. Let's just assume that you have done the right thing and have gone with a company that is reputable, reliable and above all pays a decent commission on a regular basis.
Network marketing has a massive future and has come a long way since Amway started up way back in the day. It used to be that your friends and family were the only leads you had to build your business, unless you were an aggressive sales type person - but how things change! These days, thanks to the internet, we have the ability to grow our businesses into a world wide business - using the social networks so popular today.
The number 1 top reason people fail in network marketing: the product
This can be simply put: you don't believe in the company's product or the company itself. This may not be your fault - the company may have given you great cause for concern and reasons to be doubtful (or worse, suspicious) but really this can be avoided if you are careful in choosing the company that you set your business up with in the first place. If you are in the position where you fit this criteria of not believing in the company or its product then take urgent steps to address the issue.
Think about it: network marketing is all about selling a product or a service through a network of people right? The more people in your network, the bigger your business and in theory, the more you sell and therefore earn. But if you are dealing with a poor product or service, you'll get nowhere. Even if the product is good but it bores you to tears, you will not succeed, I guarantee it. You need a company that has a product that is something that you can get excited about.
You are going to be talking to people about this product day in, day out and you need to be excited about it in order to make sales, to secure leads and also to build your business. You don't seriously think that you will be able to build a successful network marketing business without being legitimately enthusiastic about the business and the product it revolves around right? If you're pushing a product in your business that you don't like, choose another product or company that delivers.
If the product is fine, but it's the company that is wrong, then the issue is more serious. If this is the case, then I recommend you speak directly to your upline through your sponsor. Bring up your concerns in a polite, respectful, but straightforward way. After all, while it is your right to ask questions and expect transparency from them, they also have the right for you to be respectful towards them. Remember that you are not just asking tough questions about your business, but also of theirs. If your upline is not helpful, well, that brings us to reason number 2.
Reason number 2 that people will fail in network marketing: the upline
The next most common reason people fail in network marketing is all about your upline. If your upline fails you, then your business is at a serious disadvantage right from the start. The reasons for your upline not being there to support you may be many and varied - and may just be a case of bad luck. Whatever the case, these issues in a poor upline can usually be avoided by making careful choices when starting your network marketing business in the first place.
The things you really need in an upline is support, training, and a little time. When you start out your upline should be able to provide all these to you as much as needed to get you started on the right foot in your network marketing career. Often though, this is just not the case. Product training is often deficient, as is any explanation of how to best generate sales of the product, which is a central facet of the business.
Some people focus just on sponsoring new people into their business network and then move on once the person is signed up, leaving them to their own devices. This is really counterproductive though, as the success of their business depends on the success of others in their downline. Simply put, if your downline fails and quits, then your business disintegrates. So you see why a supportive upline is crucial? They are the people who are your cheerleaders and mentors, who will answer your questions and keep you motivated and growing. If you strike a poor upline, you may be better off moving on to another team, or even another company.
Reason number 3: lead generation issues
If you are running a network marketing business and you don't have a handle on lead generation then you are just shooting yourself in the foot. To grow your business, to achieve the levels of success that you want, you need to grow - and the way to grow your business is to sponsor new people. To sponsor new people into your business you need leads.
In the bad old days of network marketing (before the internet was around), lead generation was pretty much a contact sport. The people you had as leads were your friends, family, work colleagues, that guy you see walking his dog all the time - pretty much everyone you knew was a lead. The trouble was, people would get annoyed with being approached by their zealous friends and family members to join a network marketing business, and it happened a lot.
These days though, lead generation is different. We live in a global marketplace now, and your network marketing business is the same - it;s global. If you are into social networking online, you already have an extensive network - market to it. Go one step further and build it even more and do the same, once you grow your business internationally, and that is so easy these days, the world is your oyster. It used to be the case that if your multi-level marketing business expanded beyond your local area you were on the up and up - my, how things change.
Getting a handle on lead generation is crucial to your business' success. Ask your upline about it and they will be able to help you out. However if you suffer from business affliction number 2 as described above, then perhaps you should google 'MLM lead generation' or a similar term and see what you come up with. There are plenty of ideas out there on how to grow your business - some are free and some will cost you - but either way, lead generation is not really much of a problem.
Network marketing is an exciting and potentially fantastically profitable and satisfying way to start and run your own business - but it's not all plain sailing. We've talked about the top 3 reasons people fail in network marketing - and most of them can be avoided by being careful about the company that you choose to start your multi-level marketing business with. I guess the real lesson to be learned here is to do your homework before you sign on the dotted line and commit yourself to one company. The single most important thing to remember here though is that your network marketing business is meant to be fun and satisfying for you to work at - you'll be surprised to learn what an effect a big smile can have on your business' growth and success - so smile and enjoy!